Complete the following statement:
________ occur when money is earned; ________ occur when cash is received.
A)Receipts; revenues
B)Revenues; receipts
C)Accounts receivables; receipts
D)Both B & C are correct.
E)None is correct.

Question

Quizplus · Accepted Answer

Revenues occur when money is earned, receipts occur when the cash is received for the revenue.
Key Takeaway: It's important not to confuse receipts and revenues. For the accrual basis, revenues are shown at the top of the income statement in the period they are earned, not when the cash is collected. Thus, revenues occur when money is earned, receipts when cash is received.

Complete the Following Statement